The Secrets of Funnel Management
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The document discusses funnel management and sales metrics in a sales 2.0 world. It covers topics like managing the sales funnel process, merging the buying and selling funnels, using good funnel data for diagnosis and planning, and focusing on the right sales metrics like pipeline size, velocity, and conversion rates. Speakers at the event include Gerhard Gschwandtner, Mark Sellers, and Ken Rudin and they discuss topics like funnel management best practices and using the right metrics to measure sales performance and predictability.
The Secrets of Funnel Management
- 1. You Got New Game? Secrets of Funnel Management in a Sales 2.0 World Gerhard Gschwandtner, Selling Power Mark Sellers, Breakthrough Sales Performance Ken Rudin, LucidEra
- 2. Today’s Agenda Introduction Gerhard Gschwandtner, Selling Power Funnel Management Mark Sellers, Founder of Breakthrough Sales Performance The Sales Metrics that Matter Ken Rudin, Founder of LucidEra Sales Best Practices Discussion Copyright © 2008 LucidEra – All rights reserved
- 3. Polling Question In our Company Sales is Treated as: An Art A Science A Combination of Art and Science A Black Box (Nobody Really Knows How it Works) Copyright © 2008 LucidEra – All rights reserved
- 4. Today’s Agenda Introduction Gerhard Gschwandtner, Selling Power Funnel Management Mark Sellers, Founder of Breakthrough Sales Performance The Sales Metrics that Matter Ken Rudin, Founder of LucidEra Sales Best Practices Discussion Copyright © 2008 LucidEra – All rights reserved
- 5. Got New Game? The Secrets of Funnel Management in a 2.0 World © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 6. VPs of Sales Want RESULTS! Reps hitting quota! Reps being productive New customers © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 7. Changing the Game THE OLD GAME Funnel free for all Funnel afterthought ABC! Bad data Visibility Gotcha! conversations THE NEW GAME One funnel for all Funnel process Building healthy funnels Good funnel data On demand diagnostics Diagnostic and planning conversations © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 8. New Game Pillars A buying process funnel model Business process investment and commitment to funnel management Reinforced by analysis © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 10. © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com Funnel metrics vs fiction Deal metrics Sales call metrics
- 11. © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com Traditional Funnel – Selling Activity Focus Prospect Qualify Make Presentations Submit Proposal Close Monitor Results
- 12. A buying funnel and a selling funnel © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com Buying Process Order Order Selling Process
- 13. Merge the two funnels © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com Order Buying Process Selling Process
- 14. © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 15. With good funnel data… Diagnosis (‘funnel ability’) is meaningful Action plans are more effective Achieving quota is more likely © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 16. Ensuring good funnel data throughout the year Scheduled ‘inspections’ Funnel Audits Focus on the conversation © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 17. The Path to Execution: The 8-Step Process © 2008 Mark Sellers and Breakthrough SalesPerformance LLC Sales Consulting | www.breakthrough-sales.com
- 18. Today’s Agenda Introduction Gerhard Gschwandtner, Selling Power Funnel Management Mark Sellers, Founder of Breakthrough Sales Performance The Sales Metrics that Matter Ken Rudin, Founder of LucidEra Sales Best Practices Discussion Copyright © 2008 LucidEra – All rights reserved
- 19. Top 5 Sales Goals This Year Copyright © 2008 LucidEra – All rights reserved Optimizing direct and indirect sales capabilities has been among the top four CEO strategic priorities for the past two years. “ ” Increase Revenues Increase Sales Effectiveness Increase Market Share Optimize Lead Generation Improve Customer Loyalty
- 20. CRM Alone is Only Half of the Solution Copyright © 2008 LucidEra – All rights reserved Unpredictable revenues and missed forecasts One-dimensional CRM & Excel reports do not deliver critical revenue trends Lack of time, budget and resources for “ business intelligence” Buyers recognize that actionable information is the elusive but greatest value they gain from customer management tools and technologies. “ ” The Customer Management Market Sizing Report, 2007–2012, June 2008
- 21. Analytics: The Critical Second Half of CRM Copyright © 2008 LucidEra – All rights reserved In the projects we've benchmarked over the past few years, we often find that CRM systems give sales managers numbers – but what they want is insight. ” “
- 22. The Shift to SaaS is Helping… Simplicity Focused Applications Platform Power Customer Success Copyright © 2007 LucidEra – All rights reserved The faster time to value and lower operating costs associated with SaaS solutions have made these web-based, on-demand services a timely alternative to legacy applications. “ ”
- 23. But Do You Have the Right Metrics? Batting Average .406 The Old Way… On-Base % Batting Average + Walks + Sacrifices + Hit By Pitch The New Way…
- 24. But Do You Have the Right Metrics? .406 The Old Way…
- 25. Sales 2.0 Metrics That Matter Total Sales Total Pipeline Count of Lead Companies Lead to Oppty Conversion Avg Days from Lead to Oppty Avg Age of Open Oppty’s Avg Days from Lead to Close Avg Oppty Amount Avg # of Oppty’s Lead to Close Conversion The New Way… Sales Rep Scorecards Sales Rep A Sales Rep B Sales Rep C Sales Rep D Sales Rep E Sales Rep F
- 26. New Sales Pipeline Metrics That Matter Pipeline Size Changes Due To: New opportunities added Amount added this period, and % of overall pipeline Opportunities pushed out or pulled in Opportunities that grew or shrank Pipeline Velocity Time to convert a lead to an opportunity Conversion rates from stage to stage Pipeline velocity by stage Sales cycle times by type of deal Copyright © 2008 LucidEra – All rights reserved
- 27. The Sales Metrics That Matter Pipeline It’s not just the # of deals, it’s how they’re moving Total value vs. velocity People It’s not just how they’ve done, it’s how they’re going to do Quota vs. scorecard Process It’s not just one home run, it’s predictable hits over time Sales cycle time vs. stage cycle time Copyright © 2008 LucidEra – All rights reserved
- 28. Getting the Metrics that Matter Quickly The FREE LucidEra Pipeline Healthcheck™ Assess the metrics that matter in 48 hrs Copyright © 2008 LucidEra – All rights reserved How Does it Work? We take snapshots of opportunities in Salesforce.com We highlight potential areas of opportunity or concern based on our best-practice analytics We review our findings with you and help you get started
- 29. Today’s Agenda Introduction Gerhard Gschwandtner, Selling Power Funnel Management Mark Sellers, Founder of Breakthrough Sales Performance The Sales Metrics that Matter Ken Rudin, Founder of LucidEra Sales Best Practices Discussion Copyright © 2008 LucidEra – All rights reserved
- 30. Panel Discussion Gerhard Gschwandtner Mark Sellers Ken Rudin Copyright © 2008 LucidEra – All rights reserved www.lucidera.com
Editor's Notes
- #2: For VPs of Sales, what was optional yesterday is required today to compete effectively and hit your number. You may have heard of Sales 2.0, but how does this new reality actually translate to increased revenues? It's time to rethink the traditional sales funnel and put in place the performance metrics you need to predictably grow the business and avoid unwanted surprises.